As we mentioned earlier in the end-of-year report The M&A market is favourable. The most recent M&A barometer, a research report on mergers and acquisitions amongst Dutch SMEs, confirms this picture once again. For instance, the number of acquisition transactions in the second half of 2019 rose by 24% compared with the first half of the year, and the number of sale transactions by 35%. Only 5 per cent of advisers saw a decline in the number of assignments in the second half of 2019 compared with the first half of 2019.
Brookz
Research agency Brookz has published the Takeover Barometer for the second half of 2019 this week. This report revealed that most business sales – where an adviser is engaged – take place because the owner is approaching retirement age and there is a lack of succession. It is striking that the age at which business owners sell their businesses has fallen significantly over the past ten years, from 59 in 2010 to 55 in 2020.
Other reasons for selling include safeguarding accumulated financial assets (24%), the fact that the company needs a new type of manager (16%), a desire to shift focus to other activities or to start a new business (15%), and family circumstances or illness (10%).
The Brookz Barometer provides corporate finance advisers with a clear overview of trends in the M&A market. Should you find yourself in any of the situations described above and wish to sell your business, please feel free to contact one of our consultants.